Indian fintech firm Pine Labs eyes $2.9 billion valuation in reduced IPO

Nov 3 (Reuters) - Indian fintech firm Pine Labs has set a price band of 210 to 221 rupees per share for its reduced IPO that is set to open later this week, seeking a valuation of up to 254 billion rupees ($2.86 billion), a public filing showed on Monday.

At the upper end of the price range, the IPO will raise about 39 billion rupees ($440 million). The company was targeting a $1 billion IPO at a $6 billion valuation when it filed draft papers in June, sources previously told Reuters.

Pine Labs, which provides payment solutions such as point-of-sale terminals, competes with firms such as Paytm PAYT.NS and Walmart-owned PhonePe.

The company is now issuing new shares worth 20.8 billion rupees in the offering, compared to its original plan of 26 billion rupees, an updated prospectus showed on Saturday.

Existing investors including Peak XV, PayPal PYPL.O and Mastercard MA.N are selling up to 82.3 million shares, versus the earlier plan of a total 147.8 million shares.

It was not immediately clear why the company trimmed the size, but Indian regulations let companies modify their IPO size to a certain extent after they file draft papers.

The three-day share sale will open on November 7 and close on November 11. Pine Labs will allocate shares to anchor investors on November 6. The shares are expected to be listed on the Indian stock exchange on November 14. Axis Capital and Morgan Stanley are among the lead managers.

IPO proceeds will fund overseas expansion, technology investment and aid in debt reduction.

The IPO joins a wave of listings in a busy primary market, with share sales by other tech-driven firms such as Groww, Lenskart, and boAt.

India ranks as the third-largest IPO venue this year, with fundraising expected to exceed 2024's record $20.5 billion amid blockbuster listings by companies such as LG Electronics India LGEL.NS.

($1 = 88.74 Indian rupees)